Jim Cramer's 'Mad Money' Recap: Beware the Bears

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NEW YORK (TheStreet) -- "I don't see or smell fire in this market," Jim Cramer said on "Mad Money"  Wednesday. Cramer said there still aren't many bulls either, which is why he's not worried about the markets overheating.

There are still far too many bears in this market, Cramer continued -- bears trying to scare investors out of stocks by drawing comparisons to the dot-com bust of 2001, endlessly preaching that stocks are "frothy."

But Cramer said that while some hyperbolic stocks, like Tesla Motors (TSLA), Netflix (NFLX) and Workday (WDAY) are worrisome, the market overall is far from 2001.

Cramer said he's not afraid to call a top in the markets or to tell investors to sell. He did just that in 2001 and again in 2008. But today's markets do not resemble those markets and the vast majority of stocks still represent terrific value.

You cannot deny the power of this market, Cramer concluded, which is why investors need to be in stocks and not selling them outside of a few exceptions.

Executive Decision: Marc Casper

In his "Executive Decision" segment, Cramer sat down with Marc Casper, president and CEO of Thermo Fisher Scientific (TMO), a stock that's up over 50% since last April.

Casper said last year's acquisition of Life Sciences was key to the company's growth because as it makes the company a leader in the genomics equipment space and a key supplier to biotech and big pharma companies around the globe.

When asked about the Chinese market, Casper noted that the Chinese are getting serious about cleaning up their food chain, which means they need a lot more test equipment from Thermo Fisher.

Turning to the company's business model, Casper said only 25% of sales stem from equipment. The remaining 75% of sales stem from consumables and services, two areas that are very predictable and stable, which investors love.

Thermo Fisher is a lot more than just growth, however. Casper said his company has repurchased over $1.3 billing worth of stock and also rewards shareholders with dividends.

Cramer continued his recommendation of Thermo Fisher.

Cramer's Playbook

For the next installment of "Cramer's Playbook," Cramer answered the question, "What are the top three things recent college grads should keep in mind when investing?"

Cramer started off with a caveat: No one should be investing unless they've paid off their credit card debt. He said the high interest on credit cards can quickly undo any stock market gains, so any new investor should start debt-free.

Cramer's first tip for new investors: invest to save. He said investing in stocks is a lot more fun than saving with bank CDs, plus when you invest in things you like it'll be a lot harder to sell later on. That makes the stock market a great place to start saving.

Cramer's second tip: risk can be a good thing. Younger investors can afford to take more risks, Cramer said, as they'll have 40 years or more to make up any losses. Older investors need to be more cautious, but new investors can afford to speculate.

Cramer's last tip for new investors: start early. Whether it's with a company 401(k) or an individual Roth IRA, Cramer urged all recent college grads to start investing as soon as they can.

Lightning Round

In the Lightning Round, Cramer was bullish on Schlumberger (SLB), Zogenix (ZGNX), Skyworks Solutions (SWKS) and Sysco (SYY).

Cramer was bearish on Tesla Motors, Chegg (CHGG), Hercules Offshore (HERO), Molycorp (MCP), Ballard Power Systems (BLDP), NXP Semiconductors (NXPI) and Vale (VALE).

Off the Tape

In his "Off the Tape" segment, Cramer sat down with Richard Thompson, CEO of Freshpet, a privately held organic pet food maker.

Thompson said that for decades there has been zero innovation in the pet food area, but now Freshpet is bringing healthy and organic pet foods to market. People prefer healthy and organic foods for themselves, so why not for their pets?

Unlike all other pet foods on the market, Freshpet's offerings are fresh and kept refrigerated. The company has 12,000 refrigerated displays in stores and tests have shown dogs prefer their blend 20 to 1 over dried, bagged foods, he said.

Freshpet is also creating jobs with its new factory in Bethlehem, Pa. Most of Freshpet's ingredients are sourced locally from surrounding states.

Cramer said he wishes he could own a share of this innovative company.

No Huddle Offense

In his "No Huddle Offense" segment, Cramer reminded viewers that there are stock buybacks, and then there are stock buybacks that really matter.

Most company buybacks sound big but end up being nothing more than a big waste of shareholder money. Take Exxon Mobil (XOM). That company should be growing, not buying back stock, Cramer said. That's why a stock like Continental Resources (CLR), which is growing, has seen its shares soar while Exxon flounders.

Then there are stocks like AutoZone (AZO), which not only buys back shares, but does so opportunistically and aggressively. The chart of AutoZone will prove why it's never too late to buy into this stock.

To watch replays of Cramer's video segments, visit the Mad Money page on CNBC.

To sign up for Jim Cramer's free Booyah! newsletter with all of his latest articles and videos please click here.

-- Written by Scott Rutt in Washington, D.C.

To email Scott about this article, click here: Scott Rutt

Follow Scott on Twitter @ScottRutt or get updates on Facebook, ScottRuttDC

At the time of publication, Cramer's Action Alerts PLUS had a position in VALE.

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